Section 7 insolvency admission followed proof of financial debt, default, and compliance with appointment requirements.

An application under section 7 of the Insolvency and Bankruptcy Code, 2016 was found complete, and default in repayment of financial debt was established on the basis of the loan request, business loan agreement, disbursement record, and the debtor's acknowledgment of inability to repay. The corporate debtor did not appear despite service and filed no material to rebut the claim. The statutory requirements for admission were therefore satisfied, the proposed interim resolution professional met the eligibility requirements, and the corporate insolvency resolution process was initiated with directions for public announcement and moratorium.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and whether default in repayment of the financial debt was established so as to admit the petition and initiate corporate insolvency resolution process.

Analysis: The application was supported by the loan request, the business loan agreement, the disbursement record, and the debtor's letter acknowledging inability to repay. The corporate debtor did not appear despite service and did not place any material to rebut the claim. On the record, the financial debt and occurrence of default stood established. The requirements for admission under section 7 were therefore satisfied. The proposed interim resolution professional also met the statutory requirements, and the order further directed public announcement and moratorium consequences in terms of the Code.

Conclusion: The application under section 7 was admitted, corporate insolvency resolution process was initiated, the proposed interim resolution professional was appointed, and moratorium was declared.

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